26 U.S.C. § 6053 — Reporting of tips

Page 3405 TITLE 26—INTERNAL REVENUE CODE § 6053 (Added Pub. L. 88–272, title II, § 204(c)(1), Feb. 26, 1964, 78 Stat. 37; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 99–514, title XV, § 1501(c)(14), Oct. 22, 1986, 100 Stat. 2740.) Editorial Notes AMENDMENTS 1986—Subsec. (b). Pub. L. 99–514, in amending subsec. (b) generally, substituted ‘‘information is required’’ for ‘‘information is furnished’’ in heading, and in text sub- stituted reference to employers required to make a re- turn for former reference to employers making a return and reference to employees whose name is required to be set forth for former reference to employees whose name is set forth. 1976—Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’ wherever appearing. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1986 AMENDMENT Amendment by Pub. L. 99–514 applicable to returns the due date for which (determined without regard to extensions) is after Dec. 31, 1986, see section 1501(e) of Pub. L. 99–514, set out as an Effective Date note under section 6721 of this title. EFFECTIVE DATE Section applicable to group-term life insurance pro- vided after Dec. 31, 1963, in taxable years ending after such date, see section 204(d) of Pub. L. 88–272, set out as a note under section 79 of this title. § 6053. Reporting of tips (a) Reports by employees Every employee who, in the course of his em- ployment by an employer, receives in any cal- endar month tips which are wages (as defined in section 3121(a) or section 3401(a)) or which are compensation (as defined in section 3231(e)) shall report all such tips in one or more written state- ments furnished to his employer on or before the 10th day following such month. Such statements shall be furnished by the employee under such regulations, at such other times before such 10th day, and in such form and manner, as may be prescribed by the Secretary. (b) Statements furnished by employers If the tax imposed by section 3101 or section 3201 (as the case may be) with respect to tips re- ported by an employee pursuant to subsection (a) exceeds the tax which can be collected by the employer pursuant to section 3102 or section 3202 (as the case may be), the employer shall furnish to the employee a written statement showing the amount of such excess. The statement re- quired to be furnished pursuant to this sub- section shall be furnished at such time, shall contain such other information, and shall be in such form as the Secretary may by regulations prescribe. When required by such regulations, a duplicate of any such statement shall be filed with the Secretary. (c) Reporting requirements relating to certain large food or beverage establishments (1) Report to Secretary In the case of a large food or beverage estab- lishment, each employer shall report to the Secretary, at such time and manner as the Secretary may prescribe by regulation, the following information with respect to each calendar year: (A) The gross receipts of such establish- ment from the provision of food and bev- erages (other than nonallocable receipts). (B) The aggregate amount of charge re- ceipts (other than nonallocable receipts). (C) The aggregate amount of charged tips shown on such charge receipts. (D) The sum of— (i) the aggregate amount reported by employees to the employer under sub- section (a), plus (ii) the amount the employer is required to report under section 6051 with respect to service charges of less than 10 percent. (E) With respect to each employee, the amount allocated to such employee under paragraph (3). (2) Furnishing of statement to employees Each employer described in paragraph (1) shall furnish, in such manner as the Secretary may prescribe by regulations, to each em- ployee of the large food or beverage establish- ment a written statement for each calendar year showing the following information: (A) The name and address of such em- ployer. (B) The name of the employee. (C) The amount allocated to the employee under paragraph (3) for all payroll periods ending within the calendar year. Any statement under this paragraph shall be furnished to the employee during January of the calendar year following the calendar year for which such statement is made. (3) Employee allocation of 8 percent of gross receipts (A) In general For purposes of paragraphs (1)(E) and (2)(C), the employer of a large food or bev- erage establishment shall allocate (as tips for purposes of the requirements of this sub- section) among employees performing serv- ices during any payroll period who custom- arily receive tip income an amount equal to the excess of— (i) 8 percent of the gross receipts (other than nonallocable receipts) of such estab- lishment for the payroll period, over (ii) the aggregate amount reported by such employees to the employer under sub- section (a) for such period. (B) Method of allocation The employer shall allocate the amount under subparagraph (A)— (i) on the basis of a good faith agreement by the employer and the employees, or (ii) in the absence of an agreement under clause (i), in the manner determined under regulations prescribed by the Secretary. (C) The Secretary may lower the percentage required to be allocated Upon the petition of the employer or the majority of employees of such employer, the Secretary may reduce (but not below 2 per- Page 3406 TITLE 26—INTERNAL REVENUE CODE § 6053 cent) the percentage of gross receipts re- quired to be allocated under subparagraph (A) where he determines that the percentage of gross receipts constituting tips is less than 8 percent. (4) Large food or beverage establishment For purposes of this subsection, the term ‘‘large food or beverage establishment’’ means any trade or business (or portion thereof)— (A) which provides food or beverages, (B) with respect to which the tipping of employees serving food or beverages by cus- tomers is customary, and (C) which normally employed more than 10 employees on a typical business day during the preceding calendar year. For purposes of subparagraph (C), rules simi- lar to the rules of subsections (a) and (b) of section 52 shall apply under regulations pre- scribed by the Secretary, and an individual who owns 50 percent or more in value of the stock of the corporation operating the estab- lishment shall not be treated as an employee. (5) Employer not to be liable for wrong alloca- tions The employer shall not be liable to any per- son if any amount is improperly allocated under paragraph (3)(B) if such allocation is done in accordance with the regulations pre- scribed under paragraph (3)(B). (6) Nonallocable receipts defined For purposes of this subsection, the term ‘‘nonallocable receipts’’ means receipts which are allocable to— (A) carryout sales, or (B) services with respect to which a service charge of 10 percent or more is added. (7) Application to new businesses The Secretary shall prescribe regulations for the application of this subsection to new busi- nesses. (8) Certified professional employer organiza- tions For purposes of any report required by this subsection, in the case of a certified profes- sional employer organization that is treated under section 3511 as the employer of a work site employee, the customer with respect to whom a work site employee performs services shall be the employer for purposes of reporting under this section and the certified profes- sional employer organization shall furnish to the customer and the Secretary any informa- tion the Secretary prescribes as necessary to complete such reporting no later than such time as the Secretary shall prescribe. (Added Pub. L. 89–97, title III, § 313(e)(2)(A), July 30, 1965, 79 Stat. 384; amended Pub. L. 89–212, § 2(d), Sept. 29, 1965, 79 Stat. 859; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 97–248, title III, § 314(a), Sept. 3, 1982, 96 Stat. 603; Pub. L. 98–369, div. A, title X, § 1072(a), (c)(1), July 18, 1984, 98 Stat. 1052; Pub. L. 113–295, div. B, title II, § 206(c)(3), Dec. 19, 2014, 128 Stat. 4071.) Editorial Notes AMENDMENTS 2014—Subsec. (c)(8). Pub. L. 113–295 added par. (8). 1984—Subsec. (c)(3)(C). Pub. L. 98–369, § 1072(a), sub- stituted ‘‘Upon the petition of the employer or the ma- jority of employees of such employer, the Secretary’’ for ‘‘The Secretary’’ and ‘‘2 percent’’ for ‘‘5 percent’’. Subsec. (c)(4). Pub. L. 98–369, § 1072(c)(1), inserted pro- vision that an individual who owns 50 percent or more in value of the stock of the corporation operating the establishment shall not be treated as an employee. 1982—Subsec. (c). Pub. L. 97–248 added subsec. (c). 1976—Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’ wherever appearing. 1965—Subsec. (a). Pub. L. 89–212, § 2(d)(1), inserted ‘‘or which are compensation (as defined in section 3231(e)’’. Subsec. (b). Pub. L. 89–212, § 2(d)(2), inserted ‘‘or sec- tion 3201 (as the case may be)’’ and ‘‘or section 3202 (as the case may be)’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2014 AMENDMENT Amendment by Pub. L. 113–295 applicable with re- spect to wages for services performed on or after Jan. 1 of the first calendar year beginning more than 12 months after Dec. 19, 2014, see section 206(g)(1) of Pub. L. 113–295, set out as a note under section 3302 of this title. EFFECTIVE DATE OF 1984 AMENDMENT Pub. L. 98–369, div. A, title X, § 1072(c)(2), July 18, 1984, 98 Stat. 1052, provided that: ‘‘The amendment made by paragraph (1) [amending this section] shall apply to calendar years beginning after December 31, 1982.’’ EFFECTIVE DATE OF 1982 AMENDMENT Pub. L. 97–248, title III, § 314(e), Sept. 3, 1982, 96 Stat. 605, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘(1) IN GENERAL.—The amendments made by this sec- tion [amending this section and sections 6001 and 6678 of this title, and enacting provisions set out as a note under this section] shall apply to calendar years begin- ning after December 31, 1982. ‘‘(2) SPECIAL RULE FOR 1983.—For purposes of section 6053(c) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], in the case of payroll periods ending before April 1, 1983, an employer must only report with re- spect to such periods— ‘‘(A) amounts described in subparagraphs (A), (B), (C), and (D) of section 6053(c)(1) of such Code, and ‘‘(B) the name, and identification number, wages paid to, and tips reported by, each tipped employee.’’ EFFECTIVE DATE OF 1965 AMENDMENT Amendment by Pub. L. 89–212 effective only with re- spect to tips received after 1965, see section 6 of Pub. L. 89–212, set out as a note under section 3201 of this title. EFFECTIVE DATE Pub. L. 89–97, title III, § 313(f), July 30, 1965, 79 Stat. 385, provided that: ‘‘The amendments made by this sec- tion [enacting this section and amending sections 451, 3102, 3121, 3401, 3402, 6051, 6652, and 6674 of this title and section 409 of Title 42, The Public Health and Welfare] shall apply only with respect to tips received by em- ployees after 1965.’’ REGULATIONS Pub. L. 98–369, div. A, title X, § 1072(b), July 18, 1984, 98 Stat. 1052, provided that: ‘‘The Secretary of the Treasury shall prescribe by regulations within 1 year after the date of the enactment of this Act [July 18, 1984] the applicable recordkeeping requirements for tipped employees.’’ Page 3407 TITLE 26—INTERNAL REVENUE CODE § 6055 THREAT OF AUDIT PROHIBITED TO COERCE TIP REPORTING ALTERNATIVE COMMITMENT AGREEMENTS Pub. L. 105–206, title III, § 3414, July 22, 1998, 112 Stat. 755, provided that: ‘‘The Secretary of the Treasury or the Secretary’s delegate shall instruct employees of the Internal Revenue Service that they may not threaten to audit any taxpayer in an attempt to coerce the taxpayer into entering into a Tip Reporting Alter- native Commitment Agreement.’’ MODIFICATION OF TIPS ALLOCATION METHOD Pub. L. 99–514, title XV, § 1571, Oct. 22, 1986, 100 Stat. 2765, provided that: ‘‘Effective for any payroll period beginning after December 31, 1986, an establishment may utilize the optional method of tips allocation de- scribed in the last sentence of section 31.6053–3(f)(1)(iv) of the Internal Revenue Regulations only if such estab- lishment employs less than the equivalent of 25 full- time employees during such payroll period.’’ STUDY OF TIP COMPLIANCE Pub. L. 97–248, title III, § 314(c), Sept. 3, 1982, 96 Stat. 605, directed Secretary of the Treasury or his delegate to submit before Jan. 1, 1987, to Committee on Ways and Means of House of Representatives and to Com- mittee on Finance of Senate a report with respect to tip compliance in food and beverage service industry. Such study to include, but not be limited to, an anal- ysis of tipping patterns, tip-sharing arrangements, and tip compliance patterns. SUBPART D—INFORMATION REGARDING HEALTH INSURANCE COVERAGE Sec. 6055. Reporting of health insurance coverage. 6056. Certain employers required to report on health insurance coverage. Editorial Notes PRIOR PROVISIONS A prior subpart D, consisting of section 6056, related to information concerning private foundations, prior to repeal by Pub. L. 96–603, § 1(c), Dec. 28, 1980, 94 Stat. 3504. AMENDMENTS 2010—Pub. L. 111–148, title X, § 10108(j)(3)(G), Mar. 23, 2010, 124 Stat. 915, which directed substitution of ‘‘Cer- tain employers’’ for ‘‘Large employers’’ in item 6056 in the table of sections for subpart D of part III of sub- chapter A of chapter 1, was executed to this table of sections, which is for subpart D of part III of sub- chapter A of chapter 61, to reflect the probable intent of Congress. Pub. L. 111–148, title I, § 1514(c), Mar. 23, 2010, 124 Stat. 258, added item 6056. § 6055. Reporting of health insurance coverage (a) In general Every person who provides minimum essential coverage to an individual during a calendar year shall, at such time as the Secretary may pre- scribe, make a return described in subsection (b). (b) Form and manner of return (1) In general A return is described in this subsection if such return— (A) is in such form as the Secretary may prescribe, and (B) contains— (i) the name, address and TIN of the pri- mary insured and the name and TIN of each other individual obtaining coverage under the policy, (ii) the dates during which such indi- vidual was covered under minimum essen- tial coverage during the calendar year, (iii) in the case of minimum essential coverage which consists of health insur- ance coverage, information concerning— (I) whether or not the coverage is a qualified health plan offered through an Exchange established under section 1311 of the Patient Protection and Affordable Care Act, and (II) in the case of a qualified health plan, the amount (if any) of any advance payment under section 1412 of the Pa- tient Protection and Affordable Care Act of any cost-sharing reduction under sec- tion 1402 of such Act or of any premium tax credit under section 36B with respect to such coverage, and (iv) such other information as the Sec- retary may require. For purposes of subparagraph (B)(i), in the case of any individual whose name is required to be set forth in a return under subsection (a), if the person required to make a return under such subsection is unable to collect in- formation on the TINs of such individuals, the Secretary may allow the individual’s full name and date of birth to be substituted for the name and TIN. (2) Information relating to employer-provided coverage If minimum essential coverage provided to an individual under subsection (a) consists of health insurance coverage of a health insur- ance issuer provided through a group health plan of an employer, a return described in this subsection shall include— (A) the name, address, and employer iden- tification number of the employer maintain- ing the plan, (B) the portion of the premium (if any) re- quired to be paid by the employer, and (C) if the health insurance coverage is a qualified health plan in the small group market offered through an Exchange, such other information as the Secretary may re- quire for administration of the credit under section 45R (relating to credit for employee health insurance expenses of small employ- ers). (c) Statements to be furnished to individuals with respect to whom information is re- ported (1) In general Every person required to make a return under subsection (a) shall furnish to each indi- vidual whose name is required to be set forth in such return a written statement showing— (A) the name and address of the person re- quired to make such return and the phone number of the information contact for such person, and (B) the information required to be shown on the return with respect to such indi- vidual.